What was the total cost of Bimbo Foods Bakeries Distribution's raw materials in 2023?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
lows:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cost of sales: | _ | ||
| Raw materials | $ 124,918 | $ 131,052 | $ 129 |
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the total cost of raw materials for the company in 2023 was $131,052. This figure is part of the 'Cost of sales' category, which also includes other expenses such as salaries and benefits, freight, fuel and maintenance, and depreciation.
For a prospective franchisee, understanding the cost of raw materials is crucial as it directly impacts the profitability of the business. Raw materials are a significant component of the cost of sales, and fluctuations in these costs can affect the overall financial performance of a Bimbo Foods Bakeries Distribution franchise. Monitoring these costs and implementing strategies to manage them effectively is essential for maintaining a healthy bottom line.
It's also important to note that Bimbo Foods Bakeries Distribution hedges against commodity price risk, particularly for wheat and natural gas. This practice aims to minimize the impact of price variations on raw material costs, providing some stability in this area. Franchisees should inquire about the company's risk management policies and how they can benefit from these strategies to mitigate potential cost increases.